* Euro hits 1 year low vs dollar, Greek worries weigh
* Asia-Pacific shares ex-Japan fall 0.5 pct, Thai CDS climb
* KOSPI index touches 22-month high, before slipping
By Elaine Lies
TOKYO, April 23 (Reuters) - Stop-loss selling hammered the
euro to a one-year low on Friday on heightened speculation
Greece would have to seek a bailout to avoid default, while
Asian shares fell, dragged down by resource and financial
stocks.
In Europe, Britain's FTSE 100 <> was expected to open
up 0.6 percent, Germany's DAX <> to rise as much as 0.6
percent and France's CAC-40 <> to gain 0.3 percent.
"The view that the Greece debt situation will not likely
improve over the short-term is one of the key issues pressuring
the market today," said Kwak Joong-bo, a market analyst at Hana
Daetoo Securities in Seoul.
Greece's budget gap last year was worse than feared at 13.6
percent of GDP, the European Union's statistics office revealed
on Thursday, and Moody's Investors Service downgraded its
rating of Greek government debt.[]
"The market is already expecting positive earnings figures
from key companies next week, which has fueled its recent
rally. But upward momentum has turned weak as investors seek
out other positives," Kwak added.
The MSCI index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> fell 0.5 percent. Lacklustre commodity prices
hit raw materials stocks <.MIAPJMT00PUS>, while Hong Kong
<> dropped 0.8 percent, weighed down by banks and property
stocks.
The MSCI index has lost 1.6 percent so far this week, but
is up 1.2 percent on the month.
Korean stocks <> briefly touched a 22-month high after
forecast-beating results from several major firms, including
Hyundai Motor <005380.KS> and LG Display <034220.KS>, before
turning down 0.1 percent as shipyards dented the gains.
The euro was an early casualty, hammered down more than
half a percent almost to $1.3200 <EUR=>, its weakest level
since last April, and edging down towards its lowest level in
eight months against the British pound at 86.09 pence
<EURGBP=D4>.
Chinese developer Glorious Property <0845.HK> put on hold a
plan to issue dollar bonds, a source close to the deal said,
and bankers said more issues could be postponed as fallout from
Greece's debt crisis may prompt investors to seek higher
yields.
"I won't be surprised if I hear more deals being
postponed," a banker involved in recent deals said.
"Clearly, Greece is having a short-term impact on the
market and people are not happy with all this volatility."
A Reuters poll of around 50 economists gave a median 80
percent chance that Greece would turn to its euro zone partners
in the next two months and activate its aid package.
They gave a roughly one-in-four chance that Greece would
default on its debt in the next five years. []
ASIAN SOVEREIGN CREDITS HOLD WELL
Asian sovereign credits, however, were holding up well,
although the cost of insuring Thailand's debt against default
through credit default swaps climbed to its highest in more
than two months at 120/125 basis points <THGV5YUSAC=MG>.
Anti-government protests in Bangkok claimed three more
lives on Thursday and analysts warned the political tension
could result in credit downgrades and slower growth.
[]
The euro crept back to $1.3235, although it was still down
0.5 percent on the day. Its broad slide helped the dollar index
<.DXY>, a basket of six major currencies, rise 0.5 percent to
88.991 and briefly touch its highest level since late March.
The dollar also got a general boost from a fall in U.S.
jobless claims and rise in home sales, bolstering the view that
the economy is improving. [] []
Hong Kong and China <> were weighed down by bank and
property shares after new signals that the Chinese government
intends to take further action to curb property speculation.
Japan's benchmark Nikkei <> lost 0.3 percent in
caution that Greece's troubles could curb risk appetite, but
some shares gained after a range of companies lifted their
forecasts for corporate earnings, which move into higher gear
next week.
Furukawa Electric Co Ltd <5801.T> rose 1.3 percent after
hiking its operating profit estimate to 19.5 billion yen ($2.1
million) from 15 billion yen, citing growth across a broad
range of products including semiconductors and electronics.
Starmine data shows 67 percent of the companies globally
that have reported first-quarter earnings so far have met or
exceeded expectations. The vast majority of firms covered are
yet to report their earnings.
Australia's benchmark index <> fell 0.5 percent,
touching a three-week low.
Gold prices eased after slipping 0.4 percent fall the
previous day. Spot gold <XAU=> was quoted at $1,138.50.
U.S. crude futures were steady at a little under $84 a
barrel <CLc1>.
(Additional reporting by Anirban Nag in Sydney, Aiko Hayashi
in Tokyo and Jun Ebias in Hong Kong; Editing by Ron Popeski)
